Ingenious Live VCTs 1 (ILV1) and 2 (ILV2) have exited their combined investment in the Creamfields music festival for a total of £2.8 million.
Creamfield’s festival group C.I. (Events) Limited will now acquire CFDT Limited, a company set up by Ingenious Ventures to promote the festival, for a total consideration of £1.1 million.
The two Ingenious Live VCTs will keep shares of the Creamfields brand for a further two years after the deal in the event of any future sale (that goes over an agreed exit multiple).
The £2.8 million exit represents a healthy return for VCT manager Ingenious Ventures, whose VCTs originally invested combined shares of £1.7 million in the Creamfields festival back in 2008.
Paul Bedford, investment director at Ingenious, says: ‘The proposed exit deal is a great result for the Ingenious Live VCTs and we will look to pay the shareholders a special dividend from the proceeds as soon as we are able.
‘We remain confident of further great deals on exits from the Ingenious Live’s investment portfolio very soon.’
A statement from Ingenious reads: ‘The exit will give rise to a special dividend in excess of 20 pence to be paid to shareholders of both VCTs in February 2012.’
James Barton, Chief Executive of the Cream Group, adds: ‘We are pleased that despite the exit Ingenious are retaining an ongoing interest which reflects their confidence in the continued growth of our brand.’
